Shares of Blue Apron (APRN) soared after the company announced that its chief executive officer resigned and will be succeeded by Etsy's (ETSY) former chief operating officer.
SUCCESSION PLANS: Bradley Dickerson, Blue Apron's CEO who joined the company in 2016 from Under Armour (UA, UAA), is leaving the company to pursue new opportunities, the meal-kit company announced on Tuesday afternoon. Dickerson will be succeeded next week as president and CEO by Linda Kozlowski, Etsy's former COO. Dickerson will stay on as an adviser through the end of the year, the company stated. Dickerson joined Blue Apron as chief financial officer before replacing co-founder Matt Salzberg in the top role.
Additionally, Blue Apron announced that Ilia Papas, a co-founder and chief technology officer, will step down in May to pursue new opportunities. Papas is the last of the three founders to hold an executive position.The company said it has a transition plan in place.
“We are incredibly excited to have an executive of Linda's caliber as Blue Apron's next CEO,” said Matt Salzberg, who serves as Blue Apron's chairman. He added that “Linda’s exceptional leadership and marketing expertise, as well as her understanding of Blue Apron customers as a long-time customer herself, will help her advance the company towards sustainable, profitable growth.”
GUIDANCE REAFFIRMED: The company, which is expected to report first quarter results on April 30, on Tuesday also affirmed its guidance for the quarter and year, including achieving profitability on an adjusted EBITDA basis and a "significant" improvement in net loss. In January, the company said it expected Q1 revenue to improve "marginally" and forecast adjusted EBITDA of $2M-$5M.
WHAT'S NOTABLE: At its peak in March 2017, Blue Apron reported more than a million customers. However, its user base has plunged, dropping to about 557,000 as of December 31, compared with about 746,000 a year earlier. Last August, Blue Apron said its total number of customers plunged by 24% year-over-year in the second quarter and that revenue per customer was down by $1 to $250.
Blue Apron has lost much of its value since making its public debut nearly two years ago. It has been faced with a declining user base and competition from Amazon (AMZN), which acquired Whole Foods and then rolled out its own meal-kit business, and others, including Home Chief, which was acquired by Kroger (KR), Hello Fresh, Plated and Sun Basket.. Blue Apron in December announced a partnership with WW (WTW), formerly known as Weight Watchers, that features a "weekly rotating selection of recipes inspired by the WW Freestyle program and available for home delivery."
"This is an exciting time to join Blue Apron," new CEO Kozlowski said on Tuesday. She added that "Over the past year, the company has made significant product, platform and operational advancements, and now has the right foundation for growth."
PRICE ACTION: In morning trading, shares of Blue Apron are up 13.5% to $1.10.
Blue Apron
-0.04 (-3.60%)
Etsy
-0.01 (-0.01%)
Under Armour
+0.24 (+1.26%)
Under Armour
+0.33 (+1.55%)
Amazon.com
+9.5 (+0.52%)
Kroger
-0.03 (-0.13%)
WTW
+0.59 (+2.94%)